Industries with the Highest Profit Margin in Australia in 2020

1. Superannuation Funds in Australia

Profit Margin 2020: 112.8%

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. The Superannuation Guarantee scheme requires employers to contribute an amount equal to 9.5% of an employee's income to the employee's choice of superannuation fund. This system has supported significant growth in the Superannuation Funds industry for much of the past five years, which has become one of the largest pension systems in the world.

Industry revenue is expected to fall over the five years through 2019-20, to a loss of $88.3 billion. This result includes... Learn More

2. Industry Superannuation Funds in Australia

Profit Margin 2020: 91.4%

Industry super funds have become the leading type of superannuation fund in Australia by assets held. Industry super funds are not-for-profit superannuation funds that operate for the benefit of their members. Revenue for the Industry Superannuation Funds industry has risen slightly over the past five years despite weaker investment returns compared with the start of the period. Several events have weighed on the industry over the period, including the UK's EU referendum and the European sovereign debt crisis, which caused significant fluctuations in industry revenue. Overall, industry revenue is expected to rise at an annualised 1.8% over the five years... Learn More

3. Retail Superannuation Funds in Australia

Profit Margin 2020: 83.3%

Retail super funds account for a significant proportion of the asset base in the superannuation sector, behind industry super funds and self-managed super funds, and represent a significant part of the Australian financial system. The Retail Superannuation Funds industry’s revenue is expected to rise at an annualised 0.2% over the five years through 2019-20, to $46.0 billion. This includes an anticipated 6.7% rise in 2019-20. However, industry revenue is volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a... Learn More

4. Financial Asset Investing in Australia

Profit Margin 2020: 63.7%

The Financial Asset Investing industry has benefited from a strong domestic sharemarket performance for most of the past five years. Typically, industry funds are invested in equities and industry revenue depends on the performance of global sharemarkets. The outbreak of COVID-19 in 2019-20 has led to significant disruption in both local and global equity markets. Consequently, industry revenue is expected to decline at an annualised 1.7% over the five years through 2020-21, to $10.0 billion. This includes an anticipated decline of 3.4% in the current year.

Market volatility has continued to impact the industry since the GFC. Economic and geopolitical unrest... Learn More

5. Iron Ore Mining in Australia

Profit Margin 2020: 45.2%

The Iron Ore Mining industry has benefited from rising prices and higher production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 1.7% over the five years through 2019-20, to $83.4 billion. However, this trend includes an anticipated 8.7% decline in the current year, due to reduced iron ore prices and demand from China as the COVID-19 pandemic results in lower steel manufacturing output. Despite this, strong economic growth in China over the past decade has driven developments in Australian iron ore mining to meet Chinese demand for greater steel production.... Learn More

6. Car Sharing Providers in Australia

Profit Margin 2020: 41.4%

The Car Sharing Providers industry has grown at a rapid pace over the past five years, due to rising demand for cost-efficient and convenient inner-city transport. Urbanisation trends have increased traffic congestion, which has increased competition for parking spots. Rising costs of living have also made it more difficult for consumers to purchase cars outright, reducing the appeal of car ownership. The industry has benefited from advances in mobile technology over the period, improving consumer accessibility to industry services. As a result, industry revenue is expected to grow at an annualised 21.0% over the five years through 2019-20, to reach... Learn More

7. Electricity Distribution in Australia

Profit Margin 2020: 36.0%

Operators in the Electricity Distribution industry use networks to transport electricity from high-voltage transmission networks to households and businesses. These distribution networks are built and regulated to ensure a safe and reliable supply of electricity, even during peak demand periods in summer. Network operators have extended their networks substantially over the past decade, to account for potential rises in peak electricity demand. Regulators allow industry operators to generate a return on their capital so they can pay debt and equity holders. Historically, the amount of revenue that regulators have permitted the industry to capture from users has been proportional to... Learn More

8. Eye Surgery Clinics in Australia

Profit Margin 2020: 34.1%

The Eye Surgery Clinics industry has expanded over the past five years. Eye surgeons, also known as ophthalmologists, are medical professionals that specialise in diagnosing and treating eye conditions. Rising demand from Australia's ageing population has been a key driver for the industry over the past five years. However, a reduction in private health insurance as a share of the population has limited industry growth. Industry revenue is expected to increase at an annualised 0.3% over the five years through 2019-20, to $1.2 billion. This trend includes an anticipated decline of 1.1% in the current year, as rising cost pressures... Learn More

9. Toll Road Operators in Australia

Profit Margin 2020: 33.8%

Toll road operators charge motorists for the right to access high-quality roads that reduce travel times. The Toll Road Operators industry’s revenue from individual toll roads is typically stable. Individual assets grow in popularity with motorists over their lifetime, as congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both... Learn More

10. Beef Cattle Farming in Australia

Profit Margin 2020: 32.2%

The Beef Cattle Farming industry has recorded strong revenue growth over the past five years. Varying weather patterns, fluctuating turnoff rates and government policies abroad have all influenced the industry's performance over the period. Industry revenue is expected to grow at an annualised 5.2% over the five years through 2019-20, to $18.7 billion. Strong demand for Australian cattle and beef in export markets boosted industry revenue over the two years through 2015-16. Adverse weather conditions influenced the industry's performance in subsequent years, with drought conditions pushing up saleyard prices over the two years through 2019-20. Industry revenue is expected to... Learn More